Nvidia trounces estimates for earnings and revenue, shares still tank

Nvidia reported profits and revenues that were much stronger than analysts had expected Thursday.

The maker of graphics processing units said it earned $1.10 per share on an adjusted basis, topping the forecast for $0.82 according to Bloomberg. Its revenue totaled $2.23 billion, beating the forecast for $1.96 billion.

Nvidia gained 2% before slumping by as much as 8% despite the beats across the board. The decline, Bloomberg reported, reflected a slowdown in revenue growth from Nvidia's data centers to a 2% quarter-on-quarter pace compared to 38% in the first quarter.

Nvidia has been one of the market's hottest stocks this year, rallying 54% through Thursday's close.

Revenue from data centers surged 175% year-on-year to $416 million. "The recent rise in crypto coin prices resulted in increased demand in OEM GPU sales," Nvidia said. Its GPUs are used in computers that mine cryptocurrencies like bitcoin, which has risen 253% this year.

In the earnings statement, Nvidia CEO Jensen Huang said use of its chips in games like the Nintendo Switch also helped drive growth during the second quarter.

"Nearly every industry and company is awakening to the power of AI," Huang said.